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Investing in Your 401k

By Wilson Ziegler, Staff Writer

No one should have to tell you that investing in your 401k is one of the easiest, most secure, "no-brainer" investment strategies that you will ever make. If your employer offers matching contributions at any level, you should be especially motivated to invest, since this means that the amount that you will have available at retirement will be even greater than the amount that you put in. Even if it may seem like retirement is a long way away, remember: time passes quickly-especially when you aren't paying attention to the clock. Before you know it, you will be poised on the threshold of your golden years-a time when you will need to rely on investment capital (like your 401k) more than ever before.

Maximize Your 401k Contributions for Greater Returns

A common mistake that many employees, especially younger ones, tend to make is not contributing enough to their 401k. Many employers that offer matching contributions will put fifty cents for every dollar you contribute into your nest egg account. Simply put, this means that your 401k investment will yield a 50% return, guaranteed. Instead of pulling back, push forward towards your future and invest the maximum amount that your employer allows, whenever financially possible. Do keep in mind, however, that investment schedules and caps for 401k contributions vary from employer to employer, and that you may be required to be employed for a specific period of time in order to be eligible for matching contributions.

Your 401k: Make it Work for You

Now that you know just how beneficial your 401k can be to your future financial security, be sure that you are well-versed on all aspects of your employer's 401k plan, including any recent changes that may affect your contribution cap, and start saving for tomorrow, today.